Query on Transfer of shares held by foreign company in Indian Entity

    Posted By : damini / Published on : 08-Nov-2019 10:46 AM / View : 33 / Comment : 0
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    Dear Sir,

    An Indian company issued equity shares to Foreign Company. Now the query is whether the Foreign Company can gift those shares to an Indian or any one of the shareholder / Director of Indian Company.

    On receipt of funds on issue, all FEMA procedures were followed. Whether any FEMA compliance is required on transfer via gift?.

    Question is;
    1. Whether the foreign company can gift the shares?
    2. As no money in paid (as it is a gift), FEMA will apply?
    3. FC-TRS can be filed through Authorised Dealer the Bank (in case of transfer of shares for a consideration), here in gift as there is no money paid (incase of gift) no AD is involved.

    Kindly advise.
    Read more on : company indian entity foreign held transfer shares query



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